Study On Earnings Management Of Civil-owned Listed Company

Since the disclose of scandal from Enron Corporation , the earnings quality of listed corporations have faced widespread question . The call of suppressing earnings management of listed corporations is higher and higher.In recent years, the relation between corporate governance and earnings management has become hot spot all around the world. This thesis attempts to analyze the effecting factors of earnings management by empirical analysis and to put forward proposals to the control of earnings management of the GuangDong Midea Electric Appliances Company.With the sample of civil-owned listed company in 2005, the paper analyzes the relation between corporate governance and earnings management. The result shows that: the earnings management presents an inverted-U relations with the proportion of the first major stockholder; positive association is found between the property of debt ratio and the earnings management; the earnings management of companies in which managers own stocks is lower; The company scale, as well as the variation of earnings show negative ralations with the earnings management; and the relations between independent directors, as well as audit quality, and earnings management is not remarkable.The author believes that, the fact that the earnings management of GuangDong Midea Electric Appliances Company exceeds largely the average level is relate to the above factors. Therefore, to control the earnings management of GuangDong Midea Electric Appliances Company, suggestions are as follows: improve the ownership structure, reduce suitably the proportion of the debt, encourage managers to own stocks, expand the company scale and the sales level as well as enhance the independence of independent directors and so on.